Investment Fund Statistics 2024: Asset Growth, Global Trends, and ESG Impact

The investment fund landscape has transformed rapidly over the past decade, driven by a combination of technological innovation, global financial shifts, and increasing interest in sustainable investments. In 2024, investment funds are experiencing significant changes, reflecting broader economic trends and shifts in investor preferences. Whether you’re a seasoned investor or someone just dipping their toes into this world, understanding the key statistics behind this transformation is essential.

Editor’s Choice: Key Milestones in Investment Fund Growth

In 2024, the global number of investment funds is expected to reach 145,000, marking a 3% increase from the previous year.
The total value of investment funds globally has crossed the $70 trillion mark in 2024, an impressive leap from $66 trillion in 2023.
ETFs (Exchange-Traded Funds) now account for 30% of the total investment fund market, a sharp increase from 25% in 2021.
Sustainable and ESG-focused funds saw a growth of 45% in net inflows in 2023, signaling a clear shift toward ethical investing.
The average annual return for investment funds across all categories hovered around 7.5% in 2023, reflecting stable market conditions despite global uncertainties.
Hybrid funds, which combine elements of both stocks and bonds, have seen a significant surge, growing by 15% in the last year alone.
The Asia-Pacific region has emerged as a leading market for new fund launches, with over 40% of global fund launches in 2023 taking place there.

Number of Funds

As of 2024, the US remains the largest market for investment funds, with over 35,000 active funds, representing 24% of the global total.
The European fund market follows closely, with over 28,000 funds currently active, driven by a strong push for green finance and sustainable investments.
In Asia, the number of funds has surged to 20,000, fueled by increasing middle-class wealth and evolving financial markets in countries like China and India.
Emerging markets such as Brazil and South Africa have witnessed an uptick in the number of local funds, collectively reaching 5,000 in 2024.

Global Distribution of Active Investment Funds by Region

The alternative investment fund sector, which includes hedge funds and private equity funds, has expanded to 10,500 funds, reflecting the growing interest in diversified investment strategies.
Pension funds have grown to account for 25% of the global investment fund market, reflecting the increasing need for retirement savings solutions.
Real estate funds have continued to rise, now representing 15% of all investment funds globally, catering to the growing demand for property investments.

Total Fund Assets

As of 2024, total fund assets worldwide have grown to over $70 trillion, showing a 6% growth from the previous year.
US-based funds dominate the global market, managing over $35 trillion in assets, which accounts for 50% of the total global fund assets.
In Europe, total assets under management (AUM) for investment funds reached $25 trillion, with a particular focus on ESG and sustainable funds.
China has seen rapid growth in fund assets, reaching $7 trillion in 2024, up from $6.2 trillion in 2023.

Global Distribution of Assets Under Management (AUM) by Investment Funds

ETF assets have reached $9.5 trillion globally, driven by investor demand for low-cost, diversified investment options.
Money market funds hold approximately $5.7 trillion in assets as of 2024, maintaining their position as a preferred choice for conservative investors.
The alternative investment fund market, which includes hedge funds and private equity, holds nearly $4.2 trillion in assets.

Global Market Trends in Investment Funds

Sustainable investing continues to dominate the global market, with ESG-focused funds seeing inflows of over $1 trillion in 2024, up from $850 billion in 2023.
The Asia-Pacific region has become the fastest-growing market, accounting for 25% of global fund inflows in 2024, driven by increased wealth and financial innovation in countries like China and India.
Passive investment strategies are gaining popularity, with index funds and ETFs now comprising 45% of global assets under management (AUM), a substantial rise from 35% in 2020.
The European fund market is seeing a shift toward low-cost funds, as investors demand transparency and lower fees, leading to a 12% decline in actively managed funds.
Private equity has attracted substantial capital, with global assets reaching $5 trillion in 2024, as institutional investors seek alternative ways to generate returns in a low-interest environment.
The retail investment market is growing rapidly, with more individuals turning to mutual funds and ETFs, contributing to $8.3 trillion in new inflows in 2024.
Technology-driven platforms such as robo-advisors have seen a 25% growth in fund assets in 2024, particularly among millennial and Gen Z investors.

Fund Returns

The average return for equity funds globally was 10.5% in 2023, a robust performance despite market volatility, driven largely by tech and healthcare sectors.
Bond funds showed more modest returns of 4.3% in 2023, as central banks continued to navigate interest rate policies.
Real estate funds delivered average returns of 8% in 2023, benefiting from the ongoing demand for property investment, particularly in the US and Europe.
Hedge funds posted an average return of 6.8% in 2023, with the strongest performances coming from strategies focused on commodities and emerging markets.
ESG-focused funds outperformed traditional funds, delivering an average return of 11.2% in 2023, driven by investor interest in sustainability and green technologies.
Global balanced funds, which invest in a mix of equities and bonds, averaged 7% returns in 2023, offering a diversified option for investors.
Infrastructure funds generated average returns of 9.1% in 2023, as governments and private sectors alike continued to invest heavily in renewable energy and public infrastructure projects.

Fund Type	Average Return (%)
Equity Funds	10.5%
Bond Funds	4.3%
Real Estate Funds	8%
Hedge Funds	6.8%
ESG-focused Funds	11.2%
Global Balanced Funds	7%
Infrastructure Funds	9.1%

Fund Portfolio Investments by Category

Equity funds remain the most popular, comprising 55% of all global investment fund portfolios in 2024, reflecting investor confidence in stock market growth.
Bond funds make up 25% of global portfolios, particularly favored by conservative investors seeking stable income.
Alternative investments, including hedge funds, private equity, and commodities, now account for 15% of total fund portfolios, showing an increasing appetite for riskier, higher-yielding assets.
Real estate funds represent 10% of global portfolios, continuing to grow as investors seek to diversify with tangible assets.
Multi-asset funds, which allocate capital across stocks, bonds, and other securities, now hold 12% of global fund portfolios, offering a balanced approach for investors.
ESG funds are experiencing significant growth, now making up 20% of all portfolios, as more investors seek to align their investments with social and environmental values.
Money market funds maintain their appeal for short-term investments, representing 8% of total global portfolios, particularly popular in times of market uncertainty.

Fund Category	Portfolio Share (%)
Equity Funds	55%
Bond Funds	25%
Alternative Investments	15%
Real Estate Funds	10%
Multi-Asset Funds	12%
ESG Funds	20%
Money Market Funds	8%

Fund Portfolio Investments by Country and Currency for Closed-End Funds

US-based closed-end funds continue to dominate the market, managing over $1.5 trillion in assets as of 2024, with the US dollar being the primary currency.
European closed-end funds have grown to manage €900 billion in assets, with the euro representing the largest share of currency allocation.
UK closed-end funds manage assets worth over £400 billion, benefiting from strong investor confidence in real estate and alternative investments, with the British pound as the main currency.
In China, closed-end funds now hold over ¥3 trillion in assets, reflecting the country’s expanding financial markets and the increasing role of the Chinese yuan.
Japan’s closed-end funds have grown to manage ¥1.2 trillion in assets, with a strong focus on domestic equities and real estate, using the yen as the dominant currency.
Brazilian closed-end funds are growing in popularity, managing R$500 billion in assets, with the Brazilian real as the primary currency, as investors seek exposure to emerging market opportunities.
In Canada, closed-end funds now manage CAD 200 billion in assets, with the Canadian dollar representing the major currency, especially in the resource and energy sectors.

Fund Portfolio Investments by Country and Currency for ETFs

US-based ETFs hold the largest share of the global ETF market, managing over $6.5 trillion in assets as of 2024, primarily denominated in US dollars.
European ETFs have reached €2 trillion in assets, with the euro being the dominant currency. They are particularly popular for their focus on ESG and sustainable investing.
China’s ETF market continues to expand, with total assets under management reaching ¥1.5 trillion in 2024, driven by domestic demand and the growing global interest in Chinese stocks and bonds.
Canadian ETFs now manage CAD 400 billion in assets, with a strong focus on commodities and natural resources, making the Canadian dollar the primary currency.
Japan’s ETF market holds ¥500 billion in assets, with the yen remaining the dominant currency. Most investments focus on domestic equities and technology sectors.
UK ETFs manage over £350 billion in assets, with a strong focus on large-cap UK stocks and real estate, denominated in British pounds.
Australia has seen growth in its ETF market, with assets now totaling AUD 150 billion, primarily invested in mining and energy sectors, using the Australian dollar as the main currency.

Impact of Environmental, Social, and Governance (ESG) Criteria on Fund Flows

ESG-focused funds saw net inflows of over $1.3 trillion globally in 2024, reflecting a continued surge in investor interest in sustainable and responsible investing.
In Europe, ESG funds make up nearly 50% of total fund inflows in 2024, driven by regulatory frameworks such as the EU Sustainable Finance Disclosure Regulation (SFDR).
US-based ESG funds have seen a dramatic rise, with inflows reaching $500 billion in 2024, as more investors align their portfolios with ethical and sustainability goals.
Asia-Pacific ESG funds grew by 35% in 2024, led by strong performance in China and Japan, where government policies are increasingly focused on environmental sustainability.
Climate-focused funds represent 15% of all ESG investments in 2024, with assets surpassing $800 billion as the urgency around climate change drives investor behavior.
Social impact funds, which invest in companies with positive societal contributions, grew by 28% in 2024, now accounting for 10% of the total ESG market.
Green bonds—debt issued to finance environmentally friendly projects—reached $1 trillion in assets under management in 2024, underscoring the increasing popularity of fixed-income ESG investments.

Technological Advancements in Fund Management

AI-driven funds are on the rise, managing over $1.2 trillion in assets globally in 2024, utilizing machine learning algorithms to optimize investment strategies.
Blockchain technology is being increasingly adopted in fund management, with 20% of new funds in 2024 utilizing blockchain for enhanced transparency and security in transactions.
Robo-advisors now manage $3.5 trillion in assets globally, representing a 30% growth from 2023, as investors—especially millennials—favor automated and low-cost investment solutions.
The use of big data analytics in fund management has grown significantly, with 40% of large fund managers leveraging data-driven insights to improve portfolio performance.
Tokenized funds, which issue blockchain-based tokens to represent fund shares, grew by 25% in 2024, with assets under management reaching $500 billion.
Cloud-based portfolio management systems are now used by 65% of fund managers globally, streamlining operations and reducing costs.
Cybersecurity has become a top priority, with 85% of fund managers increasing their investment in advanced security systems to protect sensitive investor data in 2024.

Money Market Funds

Money market funds continue to attract conservative investors, with total assets growing to $6 trillion globally in 2024, up from $5.7 trillion in 2023.
US money market funds dominate, holding nearly $3 trillion in assets, largely due to their stability and relatively low risk.
European money market funds have grown to €1.5 trillion in 2024, with increased interest from institutional investors seeking liquidity solutions amid market uncertainties.
China’s money market funds hold ¥3 trillion in assets, making it one of the fastest-growing segments as Chinese investors seek safer, short-term investment options.
Institutional investors account for 70% of the total assets in money market funds, underscoring their importance as liquidity management tools for large corporations.
The average yield on global money market funds was 1.8% in 2024, reflecting the low-interest-rate environment and the focus on capital preservation.
Government money market funds, which invest in short-term government securities, account for 35% of all money market assets in 2024, offering low-risk alternatives to corporate debt funds.

Recent Developments in the Investment Fund Industry

The SEC introduced new regulations in 2024 aimed at increasing transparency and reducing hidden fees in the US mutual fund industry.
ESG disclosure requirements are being tightened globally, with the EU leading the charge through its Sustainable Finance Disclosure Regulation (SFDR), requiring funds to clearly report their environmental and social impacts.
Decentralized finance (DeFi) is making inroads into the investment fund industry, with $200 billion in assets now managed through decentralized protocols that bypass traditional financial intermediaries.
The merger and acquisition (M&A) activity in the fund industry has surged, with over $100 billion in deals completed in 2024, as fund managers seek to consolidate and scale their operations.
Thematic investing, where funds focus on specific sectors such as technology, healthcare, or renewable energy, has gained significant traction, with total assets in thematic funds surpassing $2 trillion globally.
The rise of actively managed ETFs has continued, with 40% growth in 2024, as investors look for alternatives to passive index-tracking funds.
Private equity fund closures reached record levels in 2024, with 15% of new private equity funds struggling to raise capital amid heightened competition and economic uncertainty.

Conclusion

As we move further into 2024, the investment fund industry shows no signs of slowing down. From sustainable investing to technological advancements, the landscape continues to evolve rapidly, offering a diverse range of opportunities and challenges for investors. Whether it’s the steady rise of ESG funds, the increasing role of technology in fund management, or the robust growth of money market funds, the trends shaping the market today are set to define the future of investing. Investors must stay informed and adaptable as the industry continues to innovate and respond to global economic conditions.

Sources

Statista

IOSCO

US Securities and Exchange Commission

NBP

CEIC

ECB

Canada Newswire

Barry Elad

Barry Elad is a dedicated tech and finance enthusiast, passionate about making technology and fintech concepts accessible to everyone. He specializes in collecting key statistics and breaking down complex information, focusing on the benefits that software and financial tools bring to everyday life. Figuring out how software works and sharing its value with users is his favorite pastime. When he's not analyzing apps or programs, Barry enjoys creating healthy recipes, practicing yoga, meditating, and spending time in nature with his child. His mission is to simplify finance and tech insights to help people make informed decisions.